The Spanish clothing brand Zara Inditex belongs to the family group which represents 75% of the activity. Inditex is one of the largest distributors in the world of fashion. It has brands such as Massimo Dutti, Bershka, Stradivarius, Oysho and so on. It has nearly 2,000 stores in 57 different countries (in the form of franchises and 90% of stores are the property of the group).
Inditex's most important asset is its manufacturing model that uses information technology extensively to reduce manufacturing lead times. One often talks about the "Zara method" which has a single production system and method for manufacturing. More than 200 designers design models annually, and can modify a product in a span of two weeks.
Zara affects all consumers, because the group decided to share its production sectors into Zara Woman, Zara man, Zara child, Zara Home. The European textile industry must cope with the flood of Chinese products on the market. Since the abolition of global quotas on January 1, 2005 (negotiated under the World Trade Organization (WTO)), Chinese imports in the EU have increased exponentially in this sector (+ 534% for pullovers, + 413% for male pants in the first quarter 2005: source: EURATEX). This situation is particularly worrying as France, Italy and Spain have asked the European Commission in Brussels to take swift action to fight against this unfair competition.
The European textile industry is already in trouble and cannot compete with Chinese producers' comparative advantage of very cheap labor and raw material costs. However, since its inception, Zara maintained a strong growth level. How did this textile group still manage to compete with producers in Third World countries whose production costs are much lower? What are the economic benefits? And what are the means used to gain additional market share? Finally, what is the strategy of economic production and distribution group which enables Zara to remain a leading European textile chain?
The Inditex Group and its flagship brand Zara is one of the leading Spanish cheap ready-to-wear brands in the European market . Indeed, Inditex is now ranked third in European manufacturing. The group, in particular through its various brands, has always prevailed with respect to the production of a loyalty to La Coruna, Galicia, where the city manager Amancio Ortega Gaona started his first factory in 1975.
Since the group was highly internationalized (especially to Latin America, as Spain continues to maintain good trade relations with these countries because of its cultural proximity), but Inditex has promoted its development in Europe: there are currently 723 (2004) Zara stores in the world with three quarters in Europe.
Inditex, Zara is one group which, has the philosophy: creativity and quality plus a rapid response to market demand. Thus, Zara is a registered manufacturing process, short delivery times are reduced due to a predominantly non-delocalized production (competitive advantage).
Zara is positioned at the same height as brands like H & M or Etam feminine side and Celio Devred or masculine side. Zara has a great international recognition and the style shows trends in Europe, the United States and in the Eastern world.
Tags: Brand Zara, leader in European textile chain, strategy
[...] They are the main drivers of traffic in the store. A facade is irrelevant to consumers shop and offers interest-free. Zara website is only available in two languages, English and Spanish, and is pretty basic: indeed, it is presented the catalog and photos, but little information remains on company, its history, etc . It may also explain the success of the new Zara has always attracted appearance. The French were embroiled in the Spanish wave . Zara yet could suffer from fatigue the brand from its customers. [...]
[...] Zara universe Summary INTRODUCTION I. Presentation of the company II. Marketing problem III. Market Analysis Supply and demand The Offer Application Environment Market Positioning Competition Direct competition Indirect competition Consumers and their behavior IV. Marketing Mix Product Policy Distribution Policy Pricing Policy Policy Promotion / Advertising Political Loyalty V. Suggestions Zara CONCLUSION REFERENCES Introduction The Inditex group, and its flagship brand Zara is one of the Spanish and European market leader in the affordable ready-to-wear section. Indeed, Inditex is now ranked as the third largest in Europe garment. [...]
[...] China and India are seen as the main beneficiaries of the removal of quotas. Boasting a large workforce and low cost, these two countries have raw materials and production basins built that meet a demand for more and more towards standardized products at low prices. The European Commission, however, limited Chinese exports for two products (flax yarn and T-shirts), and seven others under surveillance products may also lead to the application of the safeguard clause of the WTO. However, the end of quotas does not affect in the same way all stakeholders in the sector. [...]
[...] Zara must take into account important criteria in the eyes of the customers to know the importance of hospitality, support, information on the offer, the board buying, processing special cases and facilitation services to the transaction (payment facilities . In this sense, Zara designs loyalty like nobody else. The customer management is original in the sign, as is the process of manufacturing, supply . However, some keys such management, not used by the company are essential (especially the loyalty card which if well designed, can be a significant source of profit). Suggestions Zara We have noticed that Zara had many satisfactory points, but some issues could be improved . [...]
[...] The brand showcases are renewed every eight days, as 30% of its clothing. Through this, Zara shows its customers that it is always on the cutting- edge fashion. The savings realized the brand in terms of advertising would otherwise permit it to pay for the best locations: truly strategic locations. The brand also relies heavily on word-of-mouth. From the outside, the only image of the consumer can have the rest of the shop window. As a strategic point, the window should be designed to attract the entry into the retail space. [...]
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